Answer:
Assume a business man banks an amount of principle P, for n years at a compound interest of r%. His accumulated amount after n years will be given by formula:
[tex]{ \boxed{ \rm{accumulated =P(1 + \frac{r}{100} ) {}^{n} }}}[/tex]
Note that compound interest borrows a hint from the geometric progression series.
Accumulated = 5000(1 + 10%)^5
Accumulated = 5000(1 + 0.1)^5
Accumulated = 5000 × 1.61
Accumulated = 8052.55 /=
Answer:
Assume a business man banks an amount of principle P, for n years at a compound interest of r%. His accumulated amount after n years will be given by formula:
[tex]accumulated=P(1+r/100)^n[tex]
P is the principle
r is the interest
n is the period
Note that compound interest borrows a hint from the geometric progression series.
for 5 years, at rate of 10% with principle of 5000;
Accumulated = 5000(1 + 10%)^5
Accumulated = 5000(1 + 0.1)^5
Accumulated = 5000 × 1.61
Accumulated = 8052.55 /=
